According to report published by Grand View Research,Rising need for smart packaging products owing to increasing usage in the end use industries such as electronics and automotive on account of its superior protection properties is expected to fuel the growth over the forecast period. Rising industrialization in emerging regions including Asia Pacific and the Middle East is expected to drive the industry over the next eight years.

According to a report, “Smart Packaging Market Trend Analysis By Product (Active Packaging, Intelligent Packaging), By Application (Food & Beverage, Healthcare, Personal Care, Automotive) And Segment Forecasts To 2024”, published by Grand View Research, Inc.,The global smart packaging market is expected to reach USD 26.7 billion by 2024, according to a new report by Grand View Research, Inc. Rising need for smart packaging products owing to increasing usage in the end use industries such as electronics and automotive on account of its superior protection properties is expected to fuel the growth over the forecast period. Rising industrialization in emerging regions including Asia Pacific and the Middle East is expected to drive the industry over the next eight years.

Increasing application scope in the logistics industry pertaining to the surging use of RFID tags at multiple levels to speed up locating products, and to improve the availability of real-time information coupled with the elimination of record loss is expected to drive the demand over the next eight years. Moreover, rising investment to improve the logistics industry within emerging economies such as China and India are projected to propel the industry growth.

Active Packaging accounted for over 70% of the market in terms of revenue on account of superior corrosion and moisture control properties. Growing use of the product in the automotive sector is likely to drive the demand over the forecast period.

Further key findings from the report suggest:

The global smart packaging industry in terms of revenue was USD 10.8 Billion in 2015 and is expected to reach USD 26.7 Billion by 2024, recording a CAGR of 10.6% from 2016 to 2024.

NFC (near field communication) is projected to be the fastest growing segment within intelligent packaging registering a CAGR of over 12% from 2016 to 2024. Usage of NFC in the telecom industries is rising exponentially. Smartphones equipped with NFC which can be paired with NFC tags or stickers, programmed by NFC apps to automate tasks and hence, is likely to fuel the growth of smart packaging market over the forecast period.

Personal care sector is expected to register a CAGR of over 10% from 2016 to 2024 accounting for about 9% of the total market in 2015. Growing demand for personal care products particularly organic products on account of rising awareness about various health benefits over their synthetic counterparts is likely to fuel the industry over the forecast period.

Automotive segment held a significant share of over 10% in 2015. The industry is expected to grow at a CAGR of around 12% from 2016 to 2024. Growing use of RFID tags in the automotive industry to improve the production efficiency is expected to drive the demand over the forecast period. Also, rising use of RFID tags in the automotive industry for asset tracking and supply chain management is expected to propel the industry growth.

Asia Pacific accounted for a significant share of over 11% in 2015. The ready availability of raw materials coupled with cheaper manufacturing costs is expected to drive the growth. The region is also projected to witness growth of over 14% from 2016 to 2024.

The industry is moderately fragmented with the presence of a large number of prominent participants across the globe. Some leading companies operating in the global market include 3M, BASF, Du Pont, Avery Dennison Corp., Amcor Limited, Sealed Air Corporation and International Paper. 3M is an American company involved in product development, manufacturing, and marketing for businesses including industrial, safety & graphics, electronics & energy, healthcare, and consumer. The company manufactures a wide range of products which includes abrasives, maintenance, automotive, materials, films, hand hygiene, home improvement, components, patient monitoring, personal safety, signs & displays, filtration, surgical solutions, wire & cable and tapes & adhesives.

Application Insights

Food & beverage was the largest application of smart packaging in 2015, accounting for 47.3% of the revenue share. Rising use of active products in the food & beverage industry coupled with growing emphasis to preserve the quality and safety of packaged products from manufacturing to the time the food is consumed is likely to propel the segment growth.

Furthermore, growing demand for self-heating and cooling packaged products in the beverage industry which can heat beverages including tea, coffee, and chocolate to a temperature suitable for consumption is expected to fuel demand for such products in the colder regions such as North America and Europe over the forecast period.

Healthcare segment was the second largest application accounted for around 10% of the global market in 2015 and is expected to grow at a significant CAGR of over the forecast period. Rising advances in the pharmaceutical industry on account of growing R&D in the field of medicine is expected to fuel the product demand over the forecast period.

Rising use of smart packaging in industries such as pharmaceutical, food & beverage, personal care, automotive, and logistics owing to improved protection and real-time tracking which prevents the incidents of thefts, organized crime and counterfeiting is expected to drive the growth of the industry.

Regional Insights

North America emerged as the largest market accounting for almost half of the global market in 2015. Rapid growth in the industries such as food & beverage, pharmaceutical, automotive, logistics, and manufacturing coupled with steady recovery from economic recession is expected to drive the demand over the next few years.

Rising spending capability of consumers coupled with growing concerns on improving the general health in the region is expected to drive the smart packaging industry over the forecast period. The U.S. is a major consumer of smart packaging in this region owing to rising emphasis by the government to enhance the packaging quality in terms of environmental friendliness in the nation.

Europe is expected to witness a significant share of demand on account of rising emphasis by the government to reduce the toxic content in packaging material. Rising R&D activities in the pharmaceutical industry on improving the compliance to stringent legislation is expected to fuel the industry growth.

Asia Pacific region is expected to grow at the fastest pace over the projected period. Growing health awareness among consumers in Asia Pacific region especially in developing countries including China and India coupled with the growing disposable income of consumers is anticipated to boost the pharmaceutical market in the region over the projected period.

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Grand View Research has segmented the smart packaging market by product, application, and region.

Grand View Research provides syndicated as well as customized research reports and consulting services on 46 industries across 25 major countries worldwide. This U.S.-based market research and consulting company is registered in California and headquartered in San Francisco. Comprising over 425 analysts and consultants, the company adds 1200+ market research reports to its extensive database each year. Supported by an interactive market intelligence platform, the team at Grand View Research guides Fortune 500 companies and prominent academic institutes in comprehending the global and regional business environment and carefully identifying future opportunities.